A passer-by walks past a job centre in Borough, in London, Britain, December 1, 2024. REUTERS/Mina Kim
Britain's Chancellor of the Exchequer, Rachel Reeves, speaks to the students at the engineering workshop at Coleg Menai, during a visit to announce Wylfa on Anglesey, an island in North Wales, as the location for the country’s first small modular reactor, in Llangefni, Britain, November 13, 2025. REUTERS/Temilade Adelaja/Pool

By William Schomberg

LONDON (Reuters) -The head of a British employers group will accuse finance minister Rachel Reeves on Monday of ignoring them on issues such as energy costs and labour reforms and urge her to make "hard choices" in this week's budget.

The chief executive of the Confederation of British Industry will also call on Reeves to announce one or two broad tax increases, rather than "death by a thousand taxes" which could hurt the economy.

"If growth is your priority, prove it – make hard choices for it," Rain Newton-Smith will tell the organisation's annual conference, according to excerpts of her speech sent to media.

"All short-term politics leads to is long-term decline ... and this country cannot afford another decade of stagnation."

ECONOMY STUCK IN A RUT

Britain's economy has been largely stuck in a rut of slow growth since the 2007-08 financial crisis, something Reeves and Prime Minister Keir Starmer vowed to end when the Labour Party returned to power after 14 years in 2024.

However, Reeves looks set to raise taxes by tens of billions of pounds for the second time since the election to stay on track to meet her borrowing targets, hoping to avoid a bond market selloff while also increasing welfare spending.

Reeves is no longer expected to break an election promise by raising income tax and will resort instead to increases in a range of other taxes.

Newton-Smith welcomed the government's industrial, trade and infrastructure plans. But she called on Reeves to consult with business on energy costs and changes to employment rights, saying: "Lasting reform takes partnership – not a closed door."

She said possible changes to pension schemes would make it more costly for employers to hire.

MINISTER CONSULTS ON SCHEME TO CUT ENERGY PRICES

Business minister Peter Kyle, who is due to address the CBI conference, said the government was taking action as he launched consultations on a scheme to cut energy prices by up to 25% for around 7,000 manufacturers from 2027.

"This is just the start, and in the months ahead I will be going further to address business concerns," Kyle said in a press release published by the business ministry.

Stephen Phipson, head of manufacturers' group Make UK, said the scheme had to be widened to have an impact.

Large, British energy-intensive companies paid about four times more for electricity than U.S. businesses last year, and more than double competitors in France and Germany, according to the International Energy Agency.

(Writing by William Schomberg; Editing by David Holmes)